Maintaining its status as one of the top hospitality development markets in the country, three major hotel projects have recently come to light or made progress in the Phoenix area.
A July report from Lodging Econometrics showed metro Phoenix could see 26 new hotels opening in 2026, providing a total of up to 3,615 new rooms. Another 1,989 rooms across 16 developments were projected for 2027.
Algodon Center Hotel
A local news outlet recently reported on early plans for a new hotel in the Algodon Center at the NWC of 94th Avenue and Thomas Road.
Initial planning shows owner Opwest Partners and architect PHNX Design are planning a 121-room, 14.6KSF hotel on a site that could also include a 1KSF drive-thru restaurant space.
Tribute Portfolio by Marriott
Another outlet provided details on the progress two historic office buildings are making in their redevelopment into hotels.
The six-story, 61KSF Ellis Building at 2nd Avenue and Monroe Street is planned as a 95-to-105-room Tribute Portfolio by Marriott following Aperture Hotels’ $10.3M purchase of the property from Equus Development Corporation.
Equus was represented by NewGen Advisory.
Equus bought the building from the City of Phoenix in 2019 for slightly more than $2.3M, according to information in the DATABEX project database. The plan was to renovate and redevelop the historic building for modern office uses. When office demand dried up during and after the pandemic, Equus started to convert the building for residential use but did not complete the project.
Security Building and Annex Building Hotel
In August, AZBEX and other outlets reported on The City of Phoenix’s approval of a development agreement to renovate The Security Building and Annex Building into a 255-room hotel. (AZBEX; Aug. 28)
The article said, “CivicGroup and Sunflower Development Group have partnered to create Security Improvement Co., which is leading the redevelopment.
“The Security Building was initially constructed in 1928 at the SWC of Van Buren Street and Central Avenue. Developers plan on turning it into a 255-room hotel via a $135M renovation.
“The hotel will consist of various amenities, such as a 5.5KSF ballroom. There will be an additional 9.5KSF of meeting space. The hotel will feature five food and beverage outlets.”
The more recent article noted the meeting room and restaurant space at 13.5KSF.
Maricopa County currently uses the buildings for office space but is vacating as part of a move to consolidate its operations.
